FINRA Proposed Rule Change to Amend Communications with the Public Rule

FINRA is proposing to amend Rule 2210, which governs communications with the public by its members. The key change would allow broker-dealers to project investment performance or provide targeted returns on securities, portfolios, or investment strategies. These projections would be permissible only if they are derived from a sound basis and meet specified conditions designed to protect investors.

This proposed rule change requires SEC approval. Broker-dealers and financial advisers should review the proposed conditions carefully to understand how they may project performance in their communications once the rule is finalized. The filing is a proposed rule change, and FINRA is seeking public comment on the proposal. The specific comment deadline is not provided in this document but will be established by the SEC during its review process.